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Deutsche Bank Discontinuing Forex Trading (dbFX)
Stockbrokers.com has recently learned that Deutsche Bank is shutting down the retail forex trading division of its organization. Deutsche Bank states that, “in order reach [our] full potential it requires significant investment in specific resources which are not consistent with Deutsche Bank’s current strategic initiatives”. dbFX traders can continue to execute trades under their current account until May 13th. At that time and if customers so choose, dbFX has arranged for its clients to transfer their accounts to Forex.com (Gain Capital).
It was well known dbFX white labeled FXCM’s active trader platform and marketed it as their primary platform solution. Just a few weeks ago, FXCM released a statement saying they submitted a bid for dbFX’s customers but were ultimately outbid by Gain capital. FXCM doesn’t express much concern over the situation as the dbFX white label accounted for only 2.3% of total revenue.
Gain Capital’s comments on the acquisition, “One of the reasons we decided to go public was to selectively pursue attractive acquisition opportunities that would complement our business and enhance value to all parties. We believe this transaction does exactly that.” So are all large banks on the way out? Hardly. In Europe, Dukascopy (Swiss) and Saxo (Dutch) bank still have quality retail forex offerings. Stateside, Citi Bank has been expanding and developing their forex trading arm by offering new platforms and much tighter spreads than just 6 months ago. By having their own dedicated straight through order processing Citi, Dukascopy, and Saxo can offer superior pricing and liquidity that we expect from banks.
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